Section 1. Short title and extent

1. Short title and extent.— (1) This Act may be called the Companies (Donations to National Funds) Act, 1951. (2) It extends to the whole of India except the State of Jammu and Kashmir*. 1. Extended to the Union territory of Pondicherry by Act 26 of 1968, s. 3 and Schedule. *. Vide notifn. No. S.O. 3912(E), dated 30th October, 2019, this Act is made applicable to the Union territory of Jammu and Kashmir and the Union territory of Ladakh. STATEMENT OF OBJECTS AND REASONS The Associated Chambers of Commerce and many companies who are desirous of making donations to the Sardar Vallabhbhai National Memorial Fund which has been established for carrying out objects conducive to the general welfare have approached Government to remove the legal difficulty that has arisen owing to the absence of a provision in the articles of association of some companies authorising the making of such donations. Even if the shareholders decide at a special meeting to make a donation, in the absence of any authorising provision in the articles of association they are not legally entitled to do so. Act XXXV of 1948 was рassed for the purpose of removing this difficulty in the case of donations to the Gandhi Nations Memorial Fund. It is now proposed that a similar legislation be undertaken to cover donations to the Sardar Vallabhbhai National Memorial Fund and other similar National Funds approved by the Central Government in this behalf. The donations can only be made if the general body of the companies have met at special meeting and approved the making of such gift by the passing of an extraordinary resolution in the manner required by section 81 of the Indian Companies Act, 1913. As a matter of drafting, the Bill has been framed as a consolidating measure, NEW DELHI The 8th September, 1951. C. RAJAGOPALACHARI